EXPLORATION & DEVELOPMENT

Mt Morgans kicks off

Dacian Gold has broken ground at the $A220 million Mt Morgans gold project near Laverton.

Kristie Batten

This article is 8 years old. Images might not display.

The start of site work came after the company received key approvals from the Western Australian Department of Mines and Petroleum.

Early works will comprise earthworks for the 416-person accommodation camp, Westralia mine infrastructure and preparations for the installation of pumping infrastructure for dewatering the Westralia pit.

The company is still awaiting approval to dewater the pit. Underground mining is scheduled to begin in May.

Dacian is also negotiating to purchase a second-hand accommodation village, which the company has previously said could take $10 million off the capital costs.

The company remains on track to pour first gold in the March 2018 quarter.

“We continue to make strong progress at Mt Morgans on numerous fronts and remain on track to be in production in the March quarter, 2018,” Dacian executive chairman Rohan Williams said.

Dacian secured $150 million in debt financing from three banks just before Christmas, but will still need to raise the balance of the capital costs via the equity markets in the current half.

Ore will be sourced from the Westralia underground and Jupiter open pit.

Production is set to average 186,000 ounces of gold per annum at AISC of $1039/oz in the first four years.

The project has a payback period of 21 months, using a $1600/oz gold price.

Dacian shares were up by 2c to $2.38.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

MiningNews.net Research Report 2025

The MNN Research Report 2025 provides insights into critical mining themes in Australia/Oceania, including top projects, C-suite priorities, risk, ESG performance and investor sentiment.

editions

Mining Journal Intelligence: Investor Sentiment Report 2025

Exclusive insights into the plans, priorities and preferences of 130+ mining investors and top factors influencing investment decisions in 2025.

editions

Mining Journal Intelligence World Risk Report 2024 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 117 jurisdictions globally, assessed across six risk categories and an industrywide survey.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.